U.S. Consumer Comfort Drops to Eight-Week Low on Finance Views

(Bloomberg) -- A measure of sentiment among Americans declined to an eight-week low as respondents’ views of their personal finances posted the steepest two-week drop since 2015.

The Bloomberg Consumer Comfort Index fell to 58.9 from 60 in the week ended March 31, according to a report Thursday. All three main components fell, with personal finance views at the lowest level since January and the buying climate index falling to an eight-week low.

Key Insights

• The third decline in four weeks shows confidence among U.S. consumers is cooling despite a stock-market rally, rising wages and the Federal Reserve’s pledges to be patient on interest rates. While some economic data remain upbeat, retail sales unexpectedly declined in February while a separate report showed U.S. companies added the fewest workers in March since late 2017.
• The weekly measure of views of the state of the economy eased slightly.
• With income-tax refunds lower than last year and gasoline prices up sharply since 2019 began, Americans may be feeling like there’s less cash in their wallets despite consistent wage gains.

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• The comfort level among single Americans fell to the lowest level since October.
• Confidence among women fell to a six-week low.
• Comfort measures fell in three of four regions, led by the Midwest, which slumped to the lowest reading in almost three months. Sentiment improved in the South.

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